Leases

12 Months Ended

Dec. 28, 2024

Leases [Abstract]

Leases

LEASES

Leases as Lessee

Balance sheet information related to right-of-use assets and liabilities is as follows:

	Balance Sheet Location	2024		2023
Operating Leases:
Operating lease right-of-use assets	Operating lease right-of-use assets	$	25,368	$	28,962
Current portion of operating lease liabilities	Current portion of operating lease liabilities	$	3,804	$	3,654
Noncurrent portion of operating lease liabilities	Operating lease liabilities	22,295		25,907
Total operating lease liabilities		$	26,099	$	29,561
Finance Leases:
Finance lease right-of-use assets	Property, plant, and equipment, net	$	498	$	138
Current portion of finance lease liabilities	Current portion of long-term debt	$	142	$	29
Noncurrent portion of finance lease liabilities	Long-term debt	314		102
Total financing lease liabilities		$	456	$	131

Lease cost recognized in the consolidated financial statements is summarized as follows:

	2024		2023
Operating lease cost	$	5,803	$	4,115
Finance lease cost:
Amortization of lease assets	$	54	$	174
Interest on lease liabilities	14		10
Total finance lease costs	$	68	$	184

Other supplemental information related to leases is summarized as follows:

	2024			2023
Weighted average remaining lease term (in years):
Operating leases	6.35			7.25
Finance leases	2.96			4.51
Weighted average discount rate:
Operating leases	6.82		%	6.81		%
Finance leases	5.58		%	6.65		%
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	5,789		$	4,080
Operating cash flows from finance leases	14			10
Financing cash flows from finance leases	70			256

The following table summarizes the Company's undiscounted future minimum lease payments under non-cancellable contractual obligations for operating and financing lease liabilities as of year end:

Fiscal Year	Operating Leases		Finance Leases
2025	$	5,473	$	162
2026	5,188		174
2027	5,358		141
2028	5,334		19
2029	4,679		—
Thereafter	6,670		—
Total future minimum lease payments (undiscounted)	32,702		496
Less: Present value discount	(6,603)		(40)
Total lease liability	$	26,099	$	456

On December 15, 2023, the Company sold its Adairsville, Georgia distribution center. The sales price was $16,250. The gain on the sale transaction was $8,198 and is included in other operating (income) expense, net in the consolidated statements of operations. The transaction was accounted for as a successful sale and leaseback transaction.

Concurrent with the sale of the Adairsville, Georgia distribution center, the Company entered into an operating lease to lease back the property for a term of 10 years with two 5 year renewal options. The Company concluded it was not reasonably certain to exercise the renewal options and therefore, did not include in the lease liability or right of use asset. The initial annual rent is $1,496 for the first five years increasing to an annual amount of $1,585 for the second five years. The Company is responsible for normal maintenance of the building and facilities.

Leases as Lessor

The Company leases or subleases certain excess space in its facilities to third parties, which are included as fixed assets. The leases are accounted for as operating leases and the lease or sublease income is included in other operating (income) expense, net. The Company recognizes lease income on a straight-line basis as collectability is probable, including any escalation or lease incentives, as applicable, and the Company continues to recognize the underlying asset which is included in property, plant and equipment, net on the Company's consolidated balance sheets The leases do not have any residual value guarantees. The Company has elected the practical expedient to combine all non-lease components as a combined component. The nature of the Company’s sublease agreements do not provide for variable lease payments or options to purchase.

Lease income and sublease income related to fixed lease payments is recognized in other operating (income) expense, net in the in the consolidated statements of operations because they are not ordinary activities of the Company and is summarized as follows:

	2024		2023
Operating lease income	$	1,879	$	705

The following table summarizes the Company's undiscounted lease payments to be received under operating leases including amounts to be paid by the Company to the head lessor for the next five years and thereafter as of 2024:

Fiscal Year	Gross Lease Payments		Payments to Head Lessor		Net Lease Payments
2025	$	2,364	$	421	$	1,943
2026	$	2,411	$	430	$	1,981
2027	$	2,460	$	438	$	2,022
2028	$	2,509	$	447	$	2,062
2029	$	2,311	$	456	$	1,855
Thereafter	$	11,832	$	2,273	$	9,559
Total	$	23,887	$	4,465	$	19,422

Leases

LEASES

Leases as Lessee

Balance sheet information related to right-of-use assets and liabilities is as follows:

	Balance Sheet Location	2024		2023
Operating Leases:
Operating lease right-of-use assets	Operating lease right-of-use assets	$	25,368	$	28,962
Current portion of operating lease liabilities	Current portion of operating lease liabilities	$	3,804	$	3,654
Noncurrent portion of operating lease liabilities	Operating lease liabilities	22,295		25,907
Total operating lease liabilities		$	26,099	$	29,561
Finance Leases:
Finance lease right-of-use assets	Property, plant, and equipment, net	$	498	$	138
Current portion of finance lease liabilities	Current portion of long-term debt	$	142	$	29
Noncurrent portion of finance lease liabilities	Long-term debt	314		102
Total financing lease liabilities		$	456	$	131

Lease cost recognized in the consolidated financial statements is summarized as follows:

	2024		2023
Operating lease cost	$	5,803	$	4,115
Finance lease cost:
Amortization of lease assets	$	54	$	174
Interest on lease liabilities	14		10
Total finance lease costs	$	68	$	184

Other supplemental information related to leases is summarized as follows:

	2024			2023
Weighted average remaining lease term (in years):
Operating leases	6.35			7.25
Finance leases	2.96			4.51
Weighted average discount rate:
Operating leases	6.82		%	6.81		%
Finance leases	5.58		%	6.65		%
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	5,789		$	4,080
Operating cash flows from finance leases	14			10
Financing cash flows from finance leases	70			256

The following table summarizes the Company's undiscounted future minimum lease payments under non-cancellable contractual obligations for operating and financing lease liabilities as of year end:

Fiscal Year	Operating Leases		Finance Leases
2025	$	5,473	$	162
2026	5,188		174
2027	5,358		141
2028	5,334		19
2029	4,679		—
Thereafter	6,670		—
Total future minimum lease payments (undiscounted)	32,702		496
Less: Present value discount	(6,603)		(40)
Total lease liability	$	26,099	$	456

On December 15, 2023, the Company sold its Adairsville, Georgia distribution center. The sales price was $16,250. The gain on the sale transaction was $8,198 and is included in other operating (income) expense, net in the consolidated statements of operations. The transaction was accounted for as a successful sale and leaseback transaction.

Concurrent with the sale of the Adairsville, Georgia distribution center, the Company entered into an operating lease to lease back the property for a term of 10 years with two 5 year renewal options. The Company concluded it was not reasonably certain to exercise the renewal options and therefore, did not include in the lease liability or right of use asset. The initial annual rent is $1,496 for the first five years increasing to an annual amount of $1,585 for the second five years. The Company is responsible for normal maintenance of the building and facilities.

Leases as Lessor

The Company leases or subleases certain excess space in its facilities to third parties, which are included as fixed assets. The leases are accounted for as operating leases and the lease or sublease income is included in other operating (income) expense, net. The Company recognizes lease income on a straight-line basis as collectability is probable, including any escalation or lease incentives, as applicable, and the Company continues to recognize the underlying asset which is included in property, plant and equipment, net on the Company's consolidated balance sheets The leases do not have any residual value guarantees. The Company has elected the practical expedient to combine all non-lease components as a combined component. The nature of the Company’s sublease agreements do not provide for variable lease payments or options to purchase.

Lease income and sublease income related to fixed lease payments is recognized in other operating (income) expense, net in the in the consolidated statements of operations because they are not ordinary activities of the Company and is summarized as follows:

	2024		2023
Operating lease income	$	1,879	$	705

The following table summarizes the Company's undiscounted lease payments to be received under operating leases including amounts to be paid by the Company to the head lessor for the next five years and thereafter as of 2024:

Fiscal Year	Gross Lease Payments		Payments to Head Lessor		Net Lease Payments
2025	$	2,364	$	421	$	1,943
2026	$	2,411	$	430	$	1,981
2027	$	2,460	$	438	$	2,022
2028	$	2,509	$	447	$	2,062
2029	$	2,311	$	456	$	1,855
Thereafter	$	11,832	$	2,273	$	9,559
Total	$	23,887	$	4,465	$	19,422